Cairo – Mubasher: Pharos Research has maintained their ‘Overweight’ rating recommendation for Orascom Telecom Media and Technology Holding’s (OTMT) stock at a fair value (FV) of EGP 0.94 per share.
The stock’s target price (TP) may see an additional EGP 0.40 per share if North Korea-based Koryolink’s operations were included in the valuation, according to a recent report by Pharos on Wednesday.
OTMT, headed by Egyptian billionaire Naguib Sawiris, had previously said it was unable to repatriate cash from the North Korean unit after losing control of the operations there, the report highlighted.
The research firm added that the proceeds from the sale of MENA cable will “trigger strategy updates”.
The valuation was also driven by Beltone Financial’s plan to acquire a large market share of the initial public offering (IPO) pipeline in 2018, the report added, pointing out that OTMT’s profitability will hike forward if Beltone succeeds in achieving its target profitability.
On Monday, OTMT reported a 48% year-on-year decline in consolidated profits for the full-year 2017, recording EGP 464.9 million from EGP 897.5 million.
Revenues from operations grew to EGP 1.5 billion last year, versus EGP 538.3 million in 2016, the company said in a filing to the Egyptian Exchange (EGX).
Meanwhile, standalone profits dropped 44% year-on-year in 2017 to EGP 606.14 million from EGP 1.08 billion.
Income grew to EGP 765.9 million last year from EGP 68.12 million in 2016.
